Under what conditions can the commencement deadline for a Face Foundrie Facial Bar be extended?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
Facial Bar before ten (10) months after the Effective Date, provided, however, Franchisor may, in its sole discretion upon Franchisee's request, give Franchisee an opportunity to extend this opening date by six (6) months subject to Franchisee paying Franchisor an extension fee and signing an extension agreement in the form Franchisor provides. If Franchisee opts to retain any protected t
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
Based on the 2025 Face Foundrie Franchise Disclosure Document, the conditions for extending the commencement deadline for a Face Foundrie Facial Bar depend on whether the franchisee chooses to retain or release any protected territory initially granted. If the franchisee opts to retain any protected territory and Face Foundrie approves, the extension fee is $2,500. Alternatively, if the franchisee chooses to release any protected territory and seeks a site for the Facial Bar in an area to be determined, subject to Face Foundrie's approval, the extension fee is $1,500.
This means that a prospective Face Foundrie franchisee who needs more time to commence operations has two options, each with a different fee. The decision hinges on whether they want to keep their originally assigned territory or explore a new location. The franchisor's approval is required in either scenario, giving Face Foundrie control over the extension and site selection processes.
The extension fees are relatively modest compared to the overall investment in a franchise, but franchisees should carefully consider the implications of either retaining or releasing their protected territory. Releasing the territory might open up better location options, but it also introduces uncertainty. Retaining the territory provides stability but might not be the optimal location for the Facial Bar.
It is important for potential Face Foundrie franchisees to discuss these extension options and their implications with the franchisor during the due diligence process. Understanding the criteria for approval and the potential benefits and drawbacks of each option is crucial for making an informed decision.